Does China Invest in Africa for Reasons Related to the Environment?

What is it about?

This article examines whether environmental factors influence Chinese investment decisions in Africa. We find that Chinese development assistance increases along with a country’s environmental performance, but only to a point. After a state achieves a certain level of environmental quality, Chinese investments decline.

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Photo by M Kael on Unsplash

Photo by M Kael on Unsplash

Why is it important?

This article offers the first ever statistical analysis of the relationship between environmental factors and development assistance among developing countries, and it demonstrates that factors like natural resources are not main drivers of Chinese foreign assistance in Africa.